Author: roymorgansocial

Consumers won’t feel the pain unless things get serious

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Original article by Adam Creighton
The Australian – Page: 6 : 17-Sep-19

The drone attacks on Saudi oilfields serve as a reminder about how reliant Australia is on oil for its transport needs, and how potentially vulnerable it is to disruptions in the Middle East. Australia’s oil refineries import over 75 per cent of their feedstock, while Australia has the lowest oil reserves (59 days) of any member of the International Energy Agency. John Mitchell from Chatham House says around 20 per cent of Australia’s oil consumption comes through the Strait of Hormuz, either directly to Australia or indirectly after being processed in Asian refineries. The Saudi attacks are unlikely to have any immediate impact on local petrol prices.

CORPORATES
INTERNATIONAL ENERGY AGENCY, CHATHAM HOUSE

Beer giant CUB expands into wine

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Original article by Simon Evans
The Australian Financial Review – Page: Online : 17-Sep-19

Beer company Carlton & United Breweries has purchased Riot Wine Co, which sells wine in aluminium cans and kegs. Riot Wine was established in 2016 by Joe Cook and Tom O’Donnell, with 90 per cent of its sales coming from on-tap wine in bars and hotels. CUB sales vice-president Rose Scott says Riot’s management will continue to run the company, while she says that CUB has no further wine investments in mind at this stage.

CORPORATES
CARLTON AND UNITED BREWERIES, RIOT WINE CO

Bellamy’s set to be bought by China Mengniu Dairy for $1.5bn

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Original article by Eli Greenblat
The Australian – Page: Online : 17-Sep-19

The board of Bellamy’s Australia has unanimously backed a $1.5 billion takeover bid for the infant milk formula maker by China Mengniu Dairy. The transaction represents the first Chinese takeover bid for an Australian infant milk formula maker, with China Mengniu Dairy manufacturing and distributing dairy products in China, as well as having manufacturing sites in Malaysia and Indonesia. The transaction is subject to the approval of Bellamy’s Australia shareholders and the Foreign Investment Review Board.

CORPORATES
BELLAMY’S AUSTRALIA LIMITED – ASX BAL, CHINA MENGNIU DAIRY COMPANY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Time to stay calm on Iran, says Frydenberg, despite perfect storm

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Original article by Simon Benson, Ben Packham
The Australian – Page: 1 & 6 : 17-Sep-19

Treasurer Josh Frydenberg has urged business leaders and investors not to overreact to recent events such as the attacks on Saudi oil facilities. He said on 16 September that the attacks, along with Brexit and trade tensions, give "investors cause to pause". The attacks, which took place on 14 September, have sparked fears of war in the Middle East, with Donald Trump saying the US is "locked and loaded" to take action over them. Iran has denied allegations it was responsible for the attacks, which saw the price of Brent crude oil jump almost 20 per cent when markets opened on 16 September.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Rio Tinto prepares for Mongolian parliament review

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 17-Sep-19

Mongolian MPs are due to commence debate on the legal agreement that supports the operation of the Oyu Tolgoi copper mine in the week ending 19 September. The agreement in question is the 2009 Oyu Tolgoi Investment Agreement, which gives the Mongolian government a 34 per cent stake in the mine, which is regarded as one of Rio Tinto’s most significant assets. Production of gold and copper from Oyu Tolgoi commenced in 2013, while Rio is in the process of spending between $US6 billion ($8.7 billion) and $US8 billion on an underground expansion of the mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO

England win fifth Test to draw Ashes series but Australia keep urn

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Original article by Vic Marks
theguardian.com – Page: Online : 16-Sep-19

England has won the fifth Ashes test at The Oval by 135 runs, after bowling Australia out for 263. The win meant that it was the first time since 1972 that an Ashes series had ended in a draw, with Australia having already retained the Ashes. Matt Wade scored a defiant 117, while Steve Smith was an obvious choice for the Compton/Miller award for the man of the series, having scored 774 runs. Opener David Warner scored just 95 runs for the series, with Stuart Board dismissing him in seven of Warner’s 10 innings.

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Labor rethinks climate policies

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Original article by Richard Ferguson,{SHARE}Sascha O’Sullivan
The Australian – Page: 2 : 16-Sep-19

Labor’s frontbench is divided on how ambitious the climate change policy that it takes to the next federal election should be. Labor leader Anthony Albanese has not ruled out getting rid of Bill Shorten’s target of a 45 per cent emissions reduction target by 2030, while Opposition climate spokesman Mark Butler says whatever target Labor comes up with will still be an improvement on the federal government’s target. Meanwhile, Albanese has criticised the federal government for not taking steps to deal with the drought, following revelations that parts of New South Wales could run out of water within six months.

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AUSTRALIAN LABOR PARTY

Union duo plead guilty over drugs

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 11 : 16-Sep-19

Construction, Forestry, Maritime, Mining & Energy Union NSW organisers Simon Gutierrez and Nicholas Rekes have pleaded guilty to drug possession and dealing charges in Sydney Local Court. Rekes and Gutierrez were arrested in April, after a police operation that saw $4,000 worth of drugs seized and which also involved the arrest of CFMMEU NSW assistant secretary Michael Greenfield. Greenfield pleaded guilty to possession of cocaine in July, but avoided jail or a conviction. Master Builders Association CEO Denita Wain says the fact that the three still retain significant workplace entry rights despite the charges against them shows why the federal government’s Ensuring Integrity laws are so necessary.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA,{SHARE}MASTER BUILDERS’ ASSOCIATION

Support for business activism

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Original article by Patrick Durkin
The Australian Financial Review – Page: 5 : 16-Sep-19

A Committee for Economic Development of Australia survey of over 3,000 people found that over 75 per cent believe business leaders should speak out on issues of national importance. However, under 50 per cent of those surveyed felt that such advocacy was happening. The CEDA’s survey results come at a time when the federal government has criticised business for getting involved in too many activist causes. Tim Reed, the outgoing CEO of MYOB, says companies are entitled to take part in "community conversations", while he says he is proud of MYOB’s stance on issues such as same-sex marriage.

CORPORATES
COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA,{SHARE}MYOB GROUP LIMITED

Boost for L-NP as unemployment and under-employment both down in August following income tax cut and RBA rate cuts

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Original article by Roy Morgan
Market Research Update – Page: Online : 16-Sep-19

Latest data for the Roy Morgan employment series shows that 1.18 million Australians (8.7 per cent of the workforce) were unemployed in August, while an additional 950,000 (7.1%) are under-employed. Unemployment has fallen by 2.3% on a year ago, while under-employment is down 0.9%. The workforce, which comprises employed Australians and those who are unemployed and looking for work, rose year-on-year by 57,000 to 13,473,000. Roy Morgan CEO Michele Levine said the falls in unemployment and under-employment in August are early signs that consecutive RBA interest rate cuts in June and July, as well as the L-NP Government’s income tax cuts, are providing a post-election boost to the economy.

CORPORATES
ROY MORGAN LIMITED